Taxable income new ltd company

M

MDGA

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Hi guys...New here..
I have just set up a limited company with myself as single director. I provide a professional service. I have other personal income that I use for my daily expenses, I therefore only want to draw expenses from the company, travel lunch etc. My intention is to build up a fund in the company.
I do not want / need further income which would be taxed at the higher rate...

Is this ok, advisable???

M
 
Impossible to say whether or not it is advisable on the basis of the scant information you've given. Your entitlement to claim lunches and travel is highly conditional. Your company will be exposed to the professional services corporation tax surcharge if you leave money in it. If the sums involved are anyway sizeable, you need proper professional assistance before you commit to anything. If they're not, you probably don't need a company in the first instance.
 
Remember if the company is a professional service company, profits will almost certainly be taxed at around 20% not the 12.5%
 
I expect to turn over 50 - 75 k in professional fees with little outgoings, little rent etc...So if lucky a surplus with gather in the company, maybe take out a lump sum once a year....Maybe a pension contribution??
 
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